May 17, 1985

FRIDAY, MAY 17, 1985 The Economy The House Budget Committee approved a 1986 budget plan which, if adopted by the House, would set up a major confrontation with the Senate and Administration over the military budget and cost of living increases for Social Security. Democratic leaders said they expect the full House to approve the plan, possibly with the addition of revenue from a corporate minimum tax. [Page A1.] President Reagan's tax revision plan drew mixed reviews from legislators, tax reformers and interest groups in Washington. Supporters, viewing the elements disclosed so far, said the President was striving for vast changes in tax policy. But others said he missed a rare opportunity to make the system more equitable. [A1.] Business representatives applauded the plan, but some expressed concern that investment incentives would shrink. [D5.]

ALONG with tulips and azaleas and the greening of Central Park, mid-spring in New York traditionally brings with it the quickening of a pop-jazz scene. This weekend, the wealth of talent representing a variety of musical fronts, in both clubs and concert halls, offers unusually rich pickings for devotees of folk music and mainstream jazz. On the folk scene, the most promising event is the return to New York of the Seattle-based folk-pop trio Uncle Bonsai. When the group made its local debut recently, on a double bill at the Bottom Line with Loudon Wainwright 3d, its witty sophisticated music received a rousingly warm welcome. Tonight and tomorrow, the trio returns to the Bottom Line as the opening act for the local folk star Suzanne Vega, whose first album was just released by A&M Records.

''It is difficult enough to raise children in New York City, and for the very people charged with educating and protecting them to be involved with drugs is a disgrace.'' - District Attorney Robert M. Morgenthau of Manhattan. [B2:6.]

A headline yesterday with a Washington dispatch about the Senate's approval of a foreign aid bill misstated the amount of aid. It is $12.8 billion.

Friday CAGE'S 'FOUR WALLS' Antedating the Minimalist movement of the 1960's by two decades, John Cage originally wrote ''Four Walls,'' a dance and music drama, for Merce Cunningham in 1944. Embodying Cage's innovative principles of silence, repetition and processes of gradual change, the piece reflects the composer's preoccupation with disturbances of the mind at a turning point in his life, shortly before he discovered Asian philosophy and Zen Buddhism. Tonight the Asia Society will present the New York premiere of ''Four Walls,'' with new choreography by Sin Cha Hong, the Korean dancer and founder of the Laughing Stone Dance Theater Company. Also featured will be Margaret Leng Tan, one of Asia's leading pianists, and Andrea Goodman, an original member of Meredith Monk's Vocal Ensemble. The performance is at 8 P.M. in the auditorium at 725 Park Avenue, at 70th Street. Tickets are $20. Information: 288-6400.